OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Position'

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What is Position in Options Trading ?

Position
A 'position' is any open trade in a portfolio. To execute a position (to trade on long or short side) with any combination of strategies in stocks, options, futures or any other financial instrument. The position remains in your portfolio until a closing trade is executed or the option expires worthless.


Frequently Asked Questions

Question: Is there a difference between "position" and "synthetic position"?  Answer: Yes, there is a difference. A position can refer to anything. E.g. holding stock is a "position". However, an alternative method to closely mimic the behavior of another position is a "synthetic position". E.g., you may purchase stock, which is quite expensive or creates a synthetic long stock position with options contracts which is generally cheaper.



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